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Friday is still positive for the cryptocurrency market – Bitcoin and altcoins are growing. Bitcoin and other cryptocurrencies responded to $300 billion in liquidity from the Fed. In fact, the Federal Reserve injected an additional $300 billion into the economy.
The rally in the cryptocurrency market shows that Bitcoin is challenging the high of the week. Markets are still dominated by nervousness as the latest economic data show how much the Fed has made efforts to contain the banking crisis. Amid warnings that more banks could fail in the coming weeks, the cryptocurrency is one of the few safe havens from shocks reminiscent of the 2008 Global Financial Crisis (GFC).
The Fed allocates almost $300 billion to support the banking system
The Fed allocates almost $300 billion to support the banking system
The collapse of Silicon Valley Bank (SVB) and Signature Bank led to the Fed bailing out $297 billion, expanding its balance sheet for the first time since it started raising interest rates. In turn, the banks took $150 billion, which is a new record, even exceeding the 2008 GFC.
Recall that the Fed pursued such a policy in March 2020 during the cross-market collapse of COVID-19. In the following years, the US money supply grew by 46% and Bitcoin rose to almost $70,000. In general, it is the Fed that helps the cryptocurrency market and Bitcoin in general feel more confident than just a week ago.
The bulls are determined to continue their uptrend
Apparently, the bulls are determined to reverse the downtrend of the last eighteen months. At the time of writing, the price of Bitcoin managed to overcome the mark of $26,750 and it is likely that the increase in the value of Bitcoin will continue further.
Will Bitcoin be able to gain a foothold at this level or will it continue to grow further? If the bulls are able to maintain the support level at 26,500 during the day, then there is a chance that it can start testing $27,000 before March 22, when the next Fed interest rate meeting is expected.
Apparently, while the bears are forced to wait for a favorable moment, in order to again try to lower the price of Bitcoin below $25,000. Will they be able to do it soon?
bitcoin chart
Author: Vadim Gruzdev, analyst Freedman Сlub Crypto News
#Bitcoin #altcoins #rise #Fed
